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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Mike M2 who wrote (124023)8/11/2010 3:41:27 PM
From: rich evans1 Recommendation  Read Replies (3) | Respond to of 132070
 
I do not see deflation or recession based on the latest Fed statements. A slowdown in growth is not recession but a weak recovery. And the Fed said they were going to take the proceeds from MBS and maybe more to buy Government Treasuries. This is printing of money and called Seigniorage. This will increase the money supply. The MBS buying did not increase the money supply, only the monetary base. Since the banks did not loan, their was no money multiplier to increase money supply from the MBS buying. Now there will be as the government will certainly spend all the money they can.
Rich



To: Mike M2 who wrote (124023)8/12/2010 7:02:12 PM
From: Freedom Fighter  Read Replies (1) | Respond to of 132070
 
Mike M2

IMO there are vast deflationary forces at work because of all the excess debt accumulated during the 90s and 00s, but IMO the Fed will print whatever it takes to prop up the mess until they destroy the currency, create inflation and transfer massive wealth from the masses to Wall ST and the government.

I don't have a lot of free cash flow these days, but if I did I would be buying gold, silver, and stocks with pricing power on all dips.